Government faces difficult test in new wage negotiations, says financial commentator

Financial Commentator Orville Johnson believes the government faces an awkward and difficult task to contend with the public sector wage negotiations so close to the upcoming national election.

His comment comes in light of the fact that wage talks between the Ministry of Finance and trade unions representing public sector workers have started on a sour note.

Mr Johnson, addressing the issue Sunday on Radio Jamaica’s That’s a Rap, noted that there are interesting days ahead as the government and the unions meet to discuss the figures.

He said the proposal by the JCTU for a 15 per cent increase in year one and 10 per cent in year two is high, arguing that the figures should take into consideration the inflation target projected by the Bank of Jamaica.

St. Patrice Ennis, President of the Jamaica Confederation of Trade Unions, has made it clear that his group is adamantly opposed to the government's four-year contract for public sector workers seriously.

The JCTU submitted its 2025-2027 wage and fringe benefits claim to the government last November, seeking an increase of 15 per cent in year one and 10 per cent in the second year.

 But the Ministry of Finance, in its counter-offer, submitted to the Confederation last week, proposed a four-year contract.

The Finance Ministry has reportedly offered an increase of zero-per cent in year one, and 2.5% per cent in years two, three and four.

Mr Ennis, also speaking on That’s a Rap, said he was hoping the government will make a better offer.

The Ministry of Finance & The Public Service Ministry has now moved the meeting with Minister of State Xavier Mayne to July 3.

It was originally set for July 2.